Shiseido : Notice of Merger between Consolidated Subsidiaries

January 9, 2019

(Translation)

Dear Sirs and Madams,

Name of Company: Name of Representative:Shiseido Company, Limited Masahiko Uotani

President and CEO (Representative Director)

(Code No. 4911; The First Section of the Tokyo Stock Exchange)Contact:

Harumoto Kitagawa

Vice President

Investor Relations Department (Tel: [phone])

Notice of Merger between Consolidated Subsidiaries

It is hereby notified that the linked subsidiaries of Shiseido Company, Limited (the "Company") Shiseido Americas Corporation ("SAC"), the Americas regional headquarters of the Company, and Bare Escentuals Inc. and Bare Escentuals Beauty Inc. carried out an absorption-type merger, with SAC as the surviving company, as described below.

Please note that, since the merger is between subsidiaries and all of the voting rights are directly and indirectly owned by the Company, some disclosure items and content have been omitted.

1. Purpose of the merger

In March 2010, the Company acquired Bare Escentuals (including the above two companies), which develops products for the prestige brand of bareMinerals®. In 2016, the Company relocated the headquarters function of Bare Escentuals from San Francisco to New York, in order to sufficiently leverage the high capabilities of the Americas region. By further merging the above two companies into SAC, the Company will utilize management resources more effectively, as well as greater enhance the strengthening of its brand management, marketing, and operations efficiency.

2. Main points of the merger

(1) Schedule

Date of the merger (effective date): January 1, 2019

(2) Method of merger

This absorption-type merger involves SAC, the surviving company, absorbing Bare Escentuals Inc. and Bare Escentuals Beauty Inc., the non-surviving companies.

3. Overview of the companies involved in the merger (As of December 31, 2018)

Surviving company	Non-surviving company	Non-surviving company
Trade name	Shiseido Americas Corporation	Bare Escentuals Inc.	Bare Escentuals Beauty Inc.
Main business lines	Holding company and sale of cosmetics, etc. in the Americas	Bare Escentuals group holding company	Distribution of cosmetics under the brand bareMinerals®
Establishment	1965	2004	1999
Location	Delaware, U.S.A.	Delaware, U.S.A.	Delaware, U.S.A.

4. Future outlook

Since the merger is between subsidiaries and all of the voting rights are directly and indirectly owned by the Company, the impact on the performance of Company will not be material.

- End of News Release -